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Icahn Enterprises(IEP) - 2024 Q4 - Annual Report
IEPIcahn Enterprises(IEP)2025-02-26 22:27
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Financial Performance - Net sales for 2024 were 9,193million,down179,193 million, down 17% from 11,077 million in 2023[417]. - The net loss attributable to Icahn Enterprises for 2024 was 445million,comparedtoalossof445 million, compared to a loss of 684 million in 2023, representing a 35% improvement[417]. - Basic and diluted loss per LP unit improved from (1.75)in2023to(1.75) in 2023 to (0.94) in 2024[417]. - The comprehensive loss attributable to Icahn Enterprises was 451millionin2024,comparedto451 million in 2024, compared to 669 million in 2023, indicating a 33% improvement[418]. - Net loss for the year ended December 31, 2024, was 542million,comparedtoalossof542 million, compared to a loss of 1,012 million in 2023[422]. - Cash provided by operating activities for 2024 was 832million,adecreasefrom832 million, a decrease from 3,736 million in 2023[422]. - The company reported interest and dividend income of 477millionin2024,downfrom477 million in 2024, down from 636 million in 2023[417]. - The company declared distributions of 3.50perLPunitin2024,downfrom3.50 per LP unit in 2024, down from 6.00 in 2023[417]. Assets and Liabilities - Total assets decreased from 20,858millionin2023to20,858 million in 2023 to 16,279 million in 2024, a decline of approximately 22%[416]. - Total liabilities decreased from 14,785millionin2023to14,785 million in 2023 to 11,658 million in 2024, a reduction of approximately 21%[416]. - Cash and cash equivalents decreased from 2,951millionin2023to2,951 million in 2023 to 2,603 million in 2024, a decline of about 12%[416]. - Total equity attributable to Icahn Enterprises decreased to 4,621millionasofDecember31,2024,from4,621 million as of December 31, 2024, from 5,658 million in 2023[420]. - Cash and cash equivalents at the end of 2024 were 5,239million,downfrom5,239 million, down from 5,946 million at the end of 2023[422]. - The carrying value of the company's long-term debt as of December 31, 2024, was approximately 6.8billion,withanestimatedfairvalueof6.8 billion, with an estimated fair value of 6.6 billion[449]. Investment Activities - The company has an investment of approximately 64% in the Investment Funds, which mitigates the impact of fair value changes on its net gain from investment activities[396]. - The total fair market value of investments in the Investment Funds by Mr. Icahn and his affiliates was approximately 1.5billionasofDecember31,2024,downfrom1.5 billion as of December 31, 2024, down from 2.1 billion in 2023[532]. - The Investment Funds issued a pro-rata cash distribution of 650millionin2024,including650 million in 2024, including 256 million to Mr. Icahn and his affiliates[532]. - The Investment segment had a fair value of approximately 2.7billionasofDecember31,2024,downfrom2.7 billion as of December 31, 2024, down from 3.2 billion in 2023[426]. - The carrying value of equity securities decreased from 2.61billionin2023to2.61 billion in 2023 to 2.24 billion in 2024, with significant reductions in the Energy and Utilities sectors[544]. - Unrealized losses related to securities held by the Investment segment were 187millionin2024,downfrom187 million in 2024, down from 302 million in 2023[544]. Segment Performance - The company’s Energy segment relies on a positive spread between the cost of raw materials and the value of finished products to achieve gross margin, indicating exposure to commodity price fluctuations[397]. - The Automotive segment provides a full range of automotive repair and maintenance services, contributing to the company's diversified operations[428]. - The Pharma segment operates through Vivus LLC, which has two approved therapies and two product candidates in active clinical development[433]. - The Real Estate segment includes investment properties such as land, retail, office, and industrial properties, along with the development and sale of single-family homes[431]. - The Energy segment recorded revenue of 16million,16 million, 46 million, and 86millionfortheyearsendedDecember31,2024,2023,and2022,respectively,fromdeferredrevenue[510].RisksandChallenges−Thecompanyfacesrisksrelatedtoeconomicdownturns,competition,andrisingoperatingcosts,whichcouldmateriallyaffectitsfinancialcondition[7].−Thecompanyissubjecttorisksassociatedwithitsinvestmentactivities,includingthepotentialforsignificantlossesduetoleverageandmarketvolatility[7].−Thecompany’sfoodpackagingsegmentisexposedtoforeigncurrencyrisks,withrecordedtranslationlossesinearningsof86 million for the years ended December 31, 2024, 2023, and 2022, respectively, from deferred revenue[510]. Risks and Challenges - The company faces risks related to economic downturns, competition, and rising operating costs, which could materially affect its financial condition[7]. - The company is subject to risks associated with its investment activities, including the potential for significant losses due to leverage and market volatility[7]. - The company’s food packaging segment is exposed to foreign currency risks, with recorded translation losses in earnings of 9 million for the year ended December 31, 2024[402]. Debt and Interest Rates - As of December 31, 2024, the company has variable rate debt aggregating 483million,witha1.0483 million, with a 1.0% increase in interest rates potentially increasing interest expense by approximately 5 million annually[400]. - The company’s operating segments have additional borrowing availability subject to variable interest rates aggregating 306million,increasingexposuretointerestratechanges[400].OtherFinancialMetrics−Thecompanyrecordedatranslationlossof306 million, increasing exposure to interest rate changes[400]. Other Financial Metrics - The company recorded a translation loss of 7 million and a gain of 5millioninaccumulatedothercomprehensivelossfortheyearsendedDecember31,2024and2023respectively[402].−Thecostofgoodssolddecreasedfrom5 million in accumulated other comprehensive loss for the years ended December 31, 2024 and 2023 respectively[402]. - The cost of goods sold decreased from 9,327 million in 2023 to 8,619millionin2024,areductionofapproximately88,619 million in 2024, a reduction of approximately 8%[417]. - The company reported capital expenditures of 280 million in 2024, compared to 303millionin2023[422].−Partnershipdistributionsincreasedto303 million in 2023[422]. - Partnership distributions increased to 391 million in 2024 from 307millionin2023[422].BankruptcyandDeconsolidation−OnJanuary31,2023,AutoPlus,asubsidiaryofIcahnAutomotive,filedforbankruptcy,leadingtoitsdeconsolidationfromthecompany′sfinancialstatements[429].−AutoPlusfiledforChapter11bankruptcyonJanuary31,2023,leadingtoanon−cashchargeof307 million in 2023[422]. Bankruptcy and Deconsolidation - On January 31, 2023, Auto Plus, a subsidiary of Icahn Automotive, filed for bankruptcy, leading to its deconsolidation from the company's financial statements[429]. - Auto Plus filed for Chapter 11 bankruptcy on January 31, 2023, leading to a non-cash charge of 246 million for the company due to deconsolidation[530]. - The company loaned 17milliontoAutoPlusunderadebtor−in−possessioncreditfacility,withanestimatedcashcollectionof17 million to Auto Plus under a debtor-in-possession credit facility, with an estimated cash collection of 11 million as of December 31, 2024, resulting in a write-off of 127million[537].DerivativeInstruments−Thetotalcollateralpostedacrossallcounterpartieswas127 million[537]. Derivative Instruments - The total collateral posted across all counterparties was 1.5 billion in 2024, down from 1.7billionin2023[576].−Thetotalnetderivativeassetsafternettingwere1.7 billion in 2023[576]. - The total net derivative assets after netting were 18 million in 2024, compared to 39millionin2023[576].−Thetotalnetderivativeliabilitiesafternettingwere39 million in 2023[576]. - The total net derivative liabilities after netting were 756 million in 2024, down from $979 million in 2023[576].